Compensation For Consortium Cannot Be Denied To A Child Born Posthumously: Delhi High Court Upholds Rights Of The Unborn In Accident Claims

In a significant judgment passed by the High Court of Delhi, Justice Dharmesh Sharma addressed complex issues regarding the assessment and quantum of compensation in motor accident claims.

Legal Background and Facts: The case arose from an appeal by Reliance General Insurance Co Ltd against a compensation award concerning a motor accident that resulted in the death of Sanjay Aggarwal. The appellant contested the calculations made by the Motor Accident Claims Tribunal regarding the deceased's income, dependency, and additional allowances granted to his family, including his wife who had remarried and their minor children.

Dependency and Income Assessment: The court reviewed the Tribunal's approach to calculating the deceased's income and dependency. It noted errors in the dependency calculation that failed to appropriately consider the income sources that continued posthumously and the remarriage of the deceased's wife.

Compensation for Consortium and Love & Affection: The court specifically addressed the issue of compensation for loss of consortium, emphasizing the entitlement of the child born posthumously to this claim. Justice Sharma remarked, "We need to appreciate that the child had lost the love and affection and comfort of her father even before she was born."

Adjustments in Compensation: The final compensation was recalculated based on adjusted income figures and legal precedents which included revised awards for funeral expenses, loss of consortium, and overall dependency calculations.

Decision: The court modified the initial compensation, setting the total to Rs.25,60,880 with an interest rate reduced from 9% to 7.5% per annum. Furthermore, the court mandated that the compensation be deposited within four weeks to avoid a penal interest rate of 12% per annum until realization. The distribution of the compensation was also specified, with portions allocated to the deceased's wife, daughters, and parents.

Date of Decision: April 15, 2024

Reliance General Insurance Co Ltd. vs Jagdish Prasad Aggarwal & Ors